a
60 Cutter Mill Rd.
Suite 205
Great Neck, NY
11021
Tel: 516.444.3400
Fax: 516.444.3404

 

Press Releases

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.  

 

Manhattan Bridge Capital, Inc. Reports Third Quarter Results,
39.9% Increase in Revenue

         
NEW YORK, N.Y. October 29, 2012 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2012 were approximately $491,000 compared to approximately $351,000 for the three month period ended September 30, 2011, an increase of $140,000 or 39.9%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2012, $402,000 of our revenue represents interest income on the secured commercial loans that we offer to small businesses compared to $284,000 for the same period in 2011, and $89,000 represents origination fees on such loans compared to $67,000 for the same period in 2011.

Net income for the three month period ended September 30, 2012 was $0.04 per basic and diluted share (based on 4.324 million shares and 4.327 million shares, respectively), or $161,600, versus net income of $0.03 per basic and diluted share (based on 3.553 million shares and 3.561 million shares, respectively) or $97,062 for the three month period ended September 30, 2011, an increase of approximately $65,000. This increase in net income was mainly due to an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs and a decrease in other income.

As of September 30, 2012 total shareholders' equity was $8,461,000 compared to $8,291,000 as of June 30, 2012 and $8,088,000 as of December 31, 2011.

Total revenues for the nine month period ended September 30, 2012 were approximately $1,298,000 compared to approximately $1,031,000 for the nine month period ended September 30, 2011, an increase of $267,000, or 25.9%. The increase in revenue represents an increase in lending operations. Revenue of approximately $1,042,000 for the nine month period ended September 30, 2012, compared to approximately $842,000 for the same period in 2011, represents interest income on the secured commercial loans that we offer to small businesses, and $256,000 represents origination fees on such loans compared to $189,000 for the same period in 2011. 

Net income for the nine month period ended September 30, 2012 was $0.08 per basic and diluted share (based on 4.324 million shares and 4.330 million shares, respectively), or $356,647, versus net income of $0.08 per basic share and diluted share (based on 3.401 million shares and 3.416 million shares, respectively) or $264,979 for the same period in 2011, an increase of approximately $92,000. This increase in net income was mainly due to an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs and a decrease in other income.

Assaf Ran, Chairman of the Board and CEO stated, “Once again we have demonstrated that our model works. This time, with the support of the line of credit from Sterling National Bank, we presented a very impressive increase in revenue and net earnings. As reported in the 10Q, to date we have not experienced any defaults on our loan portfolio. We look forward to continuing improvement our performance.”

Manhattan Bridge Capital, Inc., provides short-term secured non-banking commercial loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in New York Metropolitan area. We operate the web site: http://www.manhattanbridgecapital.com

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Forward-looking statements are typically identified by the words “believe,” “expect,” “intend,” “estimate” and similar expressions.  Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies.  These forward-looking statements are not guarantees of future performance and involve risks and uncertainties.  Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as “Cautionary Statements”), including but not limited to the following: (i)  the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth.  The accompanying information contained in this report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences.  These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements.  We undertake no obligation to update or revise any forward-looking statements.  All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 

Assets

September 30, 2012
(Unaudited)

December 31,2011
(audited)

Current assets:

   

   

Cash and cash equivalents          

$      208,360

$      221,905

Short term loans receivable

9,607,294

6,916,090

Interest receivable on loans

144,746

109,905

Other current assets

54,092

16,463

            Total current assets

10,014,492

7,264,363

 

 

 

Investment in real estate

146,821

146,821

Long term loans receivable

3,080,866

2,498,262

Property and equipment, net

106

588

Security deposit

6,491

6,349

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

54,840

72,788

                
            Total assets

 

$ 13,403,616

 

$ 10,089,171

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Line of credit and short term loans

$ 4,109,465

$   1,159,465

Accounts payable and accrued expenses

13,710

60,072

Deferred revenues

128,772

112,780

Income taxes payable

190,256

168,786

       Total current liabilities

4,442,203

1,501,103

Long term liabilities:

 

 

Senior secured notes

500,000

500,000

                 Total liabilities

4,942,203

2,001,103

             
Commitments and contingencies

 

 

Shareholders’ equity:

 

 

Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 4,405,190 issued; 4,321,959 and 4,324,459 outstanding

 

4,405

 

4,405

Additional paid-in capital

9,675,584

9,656,280

Treasury stock, at cost - 83,231 and 80,731 shares

(244,007)

(241,400)

Accumulated deficit

(974,569)

(1,331,217)

           Total shareholders’ equity

8,461,413

8,088,068

             
 Total liabilities and shareholders’ equity

 

$ 13,403,616

 

$ 10,089,171


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2012

2011

2012

2011

 

Interest income from loans

 

$ 402,119

 

$ 283,821

 

 $ 1,042,183

 

 $ 842,222

Origination fees

            89,191

           67,220

255,514

189,229

    
Total Revenue

           491,310

              351,041

      1,297,697

       1,031,451

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

              86,779

              48,580

 

186,851

 

111,742

Referral fees

1,232

763

4,891

2,174

General and administrative expenses

        
 183,586

       
 195,226

 

547,769

 

566,146

     Total operating costs and expenses

            271,597

            244,569

739,511

680,062

 

 

 

 

 

Income from operations

        219,713

     106,472

       558,186

       351,389

 

Other income

   6,887

   31,590

20,661

70,590

 

Income from operations before
 income tax expense

                          
            226,600

                           
            138,062

           578,847

           421,979

Income tax expense

(65,000)

(41,000)

(222,200)

(157,000)

 

Net Income

   $     161,600

$      97,062

   $  356,647

   $  264,979

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $         0.04

    $        0.03

           $ 0.08

           $ 0.08

--Diluted

   $          0.04

   $        0.03

           $ 0.08

           $ 0.08

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    4,324,258

    3,552,720

   4,324,392

   3,401,382

--Diluted

    4,327,305

    3,561,386

   4,330,435

   3,416,189

 

 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

            Nine Months Ended September 30,

 

 

 2012

 

 2011

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $   356,647

 

    $   264,979

  Adjustments to reconcile net income to net cash provided by  
     operating activities -

 

 

 

 

  Amortization of deferred financing costs

 

17,948

 

27,296

  Depreciation

 

482

 

1,677

  Non cash compensation expense

 

19,304

 

47,862

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(34,841)

 

28,298

       Other current and non current assets

 

(37,770)

 

(7,067)

       Accounts payable and accrued expenses

 

(46,362)

 

(39,929)

       Deferred revenues

 

15,993

 

27,587

       Income taxes payable

 

21,470

 

(46,727)

              Net cash provided by operating activities

 

312,871

 

303,976

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Investment in real estate

 

---

 

(294,321)

   Issuance of short term loans

 

(11,148,500)

 

(6,504,036)

   Collections received from loans

 

7,874,691

 

6,212,018

             Net cash used in investing activities

 

(3,273,809)

 

(586,339)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit, net

 

2,950,000

 

1,159,465

    Purchase of treasury shares

 

(2,607)

 

---

              Net cash provided by financing activities

 

2,947,393

 

1,159,465

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

          (13,545)

 

         877,102

Cash and cash equivalents, beginning of the year

 

221,905

 

386,023

Cash and cash equivalents, end of period

 

    $   208,360

 

    $ 1,263,125

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$     200,730

 

$     203,727

Interest paid during the period

 

$     152,879       

 

$       84,446